Windfall Profits Tax Roadblocked By Senate GOP
Recently, a bill by the Senate Democrats was blocked by Senate Republicans. It had failed to the necessary 60 votes for it to pass. The vote was 51 to 43. If the bill had passed, a twenty-five percent supplemental tax on windfall profits would have been added.
It is said that the oil companies have enjoyed such profits as a result of the rising price of energy such as oil and fuel. However, the bill did not get the necessary 60 votes needed to pass through the Senate floor.
Republican Senate Minority Leader Mitch McConnell of Kentucky said that it was a gimmick and it would do nothing. McConnell said: “Hitting the gas companies might make for good campaign literature or evening news clips, but it won’t address the problem. This bill isn’t a serious response to gas prices. It is just a gimmick.”
He adds: “They are hoping the idea of going after energy companies will create the illusion of action after a week in which they themselves fought for a bill that would make the problem worse. What a political charade.”
According to Senate Republicans, consumers will be feeling the pain at the end.
However, six Senate Republicans broke ranks with the party to support the bill. This November, they are seeking to be re-elected. Still, it did not get the necessary 60 votes needed.
Should it passed, not only would there be a twenty-five percent tax on windfall profits, but it would allow lawsuits against OPEC. However, it would not affect renewable sources of energy.
“We’re not afraid, on this side, to go after Big Oil when they are not doing the right thing,” said Democratic Senator Charles Schumer of New York. Schumer had called OPEC a cartel that continuously squeezes money.
Republican Senator Kay Bailey Hutchison of Texas called the bill a pathetic attempt at a viable energy plan.
Right now, gas is at least $4 a gallon. The issue of gas prices could be linked with the economy, which is the strong suit of presumed Democratic Presidential nominee Senator Barack Obama of Illinois.
Also, the issue of rising gas prices has brought forth protests across Asia and Europe. Ultimately, that has eclipsed climate control as the main issue to be discussed at this year’s G8 summit in Hokkaido, Japan.
Tags: Gop , Republicans , Democrats , Oil , Fuel , Big Oil , Obama , G8 Summit , Opec
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